Canford Cliffs leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Canford Cliffs tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Canford Cliffs you would be well advised to investigate if your lease has between 70 and 90 years left. There are compelling reasons why a Canford Cliffs leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Canford Cliffs with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Canford Cliffs,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Canford Cliffs valuers.
James was the the leasehold proprietor of a studio apartment in Canford Cliffs on the market with a lease of just over 61 years unexpired. James on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were James to exercise his statutory right. James procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2010 we were e-mailed by Ms V François who, having acquired a purpose-built apartment in Canford Cliffs in January 1999. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparative premises in Canford Cliffs with a long lease were worth £176,200. The mid-range ground rent payable was £65 collected per annum. The lease elapsed on 9 July 2080. Given that there were 56 years remaining we estimated the premium to the landlord for the lease extension to be within £29,500 and £34,000 not including fees.
In 2009 we were approached by Dr Benjamin Garcia who, having purchased a ground floor flat in Canford Cliffs in March 2002. The question was if we could estimate the price would likely be to extend the lease by ninety years. Comparable properties in Canford Cliffs with a long lease were valued about £237,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease expired in 2091. Given that there were 67 years unexpired we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 plus professional charges.